the friendship model: how to build brand advocacy in a consumer-driven world

FRIENDSHIP

MODEL

HOW TO BUILD BRAND ADVOCACY IN A CONSUMER-DRIVEN WORLDTHE

Copyright © 2007 22squared

AN ORIENTATION BY BRANDON MURPHY

Copyright © 2007 22squared inc. For educational use only. No part of this presentation maybe published, sold, or otherwise used for profit without the written permission of 22squared.

The Friendship Model is a registered trademark of 22squared.

THE LAWYERS SAY....

A new business tool?

A positioning for the agency?

A belief about marketing?

A philosophy for how we work?

A measure of our success?

SO, WHAT IS THE FRIENDSHIP MODEL?


YESThank you


Let’s start with the first question...

why did we create it?

Let’s start with the first question...

why did we create it?

[BECAUSE WE HAD TO]

We were trying to change the way we do business...just like every other ad agency that existed before web 2.0.

But the real problem...

Source: Microsoft Digital Advertising Solutions

If you haven’t seen this video, you’re missing out...it’s brilliant. http://ub0.cc/77/4f

She’s a consumer.He’s an advertiser.All she wants is genuine a!ection.All he gives is loyalty reduction.

http://ub0.cc/77/4f

http://ub0.cc/77/4f

People want brands that...

...more like friends than salespeople

ACTCopyright © 2007 22squared

And when brands DO, people talk:

Brands perceived to act on their customers’ behalf have 44% more advocates.*[ ]

*22squared Friendship Model ResearchCopyright © 2007 22squared

So we need to help brandsDO


To get people talking...

BUT...


... we must create

relationships worth talking about.


We need to turn our original way of marketing on its head...


Literally

AWARENESS

PURCHASE

[OLD]

PREFERENCE


ADVOCACY

PURCHASES

RELATIONSHIPS

[NOW]


does an agency create relationships worth talking about?

HOWCopyright © 2007 22squared

that good brands are like people.

REALIZE


The actions that make people great friends

that cause people to advocate for brands.

are the same


[“You can make more friends in two months by being interested in other people than in two years by making other people interested in you.”

- Dale Carnegie

]

Think about it...

...what do friends do?


H AV E C H E M I S T R Y

REMAIN AUTHENTIC

ACT TRANSPARENT

A R E E M P A T H E T I C

SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P.O .V.

GIVE MORE THAN GET

S T A Y I N T O U C H

INSPIRE EACH OTHER

FRIENDSFRIENDS


Makes sense, right?


But how do we put that theory in action?


FRIENDSHIP

State of being a friend

Someone you know and trust

A member of the same group/nation

Allied in a struggle, cause or movement


MODEL

FRIENDSHIP

State of being a friend

Someone you know and trust

A member of the same group/nation

Allied in a struggle, cause or movement

An example of a behavior; a philosophy lived out

Statistical method for accomplishing something

A compass that points you in the right direction

A belief that never lets you down++


Friendship Model = Higher

Advocacy


SHAREHOLDER

EVANGELISTRECOMMENDER

MARGINALCUSTOMER

DISSATISFIEDCUSTOMER ACTIVELY

AGAINST

REPEAT SATISFIED

ADVOCATES BUYERS CRITICS

Here’s how we size up advocacy:

% of brand’s customers who are...


TA = A - C

TRUE ADVOCACYTM

TA = A - CADVOCATES CRITICS


TA = A - C

NOTE: We’ve done lots of research on this...on 200 brands with over 50,000 people*

TA = A - C

*22squared Friendship Model Research


TA = A - C

Are advocates worth more than other customers?$Copyright © 2007 22squared

YES(THE SHORT ANSWER)

TA = A - C

Buy more

Talk and share more

Recommend more

WHAT THEY DO

Spending levels

Conversation rates

Recommendation rates

WHAT WE MEASUREADVOCATES


When advocates talk, brands growFACT :


TM

GROWTH

TRUE ADVOCACY

seriously, check it out...


*Growth index combines revenue growth, profit margins and operating income growth over a three-year period, from 05 - 07

SOURCE: 22squared Apparel Retail White Paper, 2008

APPAREL RETAILERS


%

Average annual growth rate from 2005 - 2007

SOURCE: 22squared Wireless Provider White Paper, 2008

WIRELESSPROVIDERS


Average annual passenger revenue growth rate from 2005-2007

SOURCE: 22squared Airline White Paper, 2009

AIRLINES


does the Friendship Model help increase advocacy for brands?

Play a more meaningful role in their life

Create momentum, get people talking more and moving toward the brand

Identify the actions the brand must take to increase advocates

1) 2) 3)

HOWROLES ACTIONS MOMENTUM


Play a more meaningful role in their life

1)

ROLES


The better friend you are, the more customers talk.

Understand the role a brand plays in the life of the customer and deepen it.[ ]

FACT :


SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

351 Index*

A unique connection; a brand you can’t live without

Copyright © 2007 22squared*Index among all brands tested

SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

Inner-circle, depend on, always there

202 Index*



SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

Familiar in a narrow context, but in a restrictive way.

143 Index*




SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

Still new, but on the road to becoming closer

320 Index*



Familiar in a narrow context


SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

Ambivalent, no expectations and little reward

143 Index*



On the road to becoming closer



SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

By association or inheritance, not solely your choice

286 Index*




Ambivalent, no expectations



SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

A short-term experiment, likely to happen only once

177 Index*





By association or inheritance



SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

Lack of options, out of proximity or avoidance.

210 Index*






Short-term experiment



SOUL MATE

CLOSE FRIEND

NICHE FRIEND

NEW FRIEND

ACQUAINTANCE

FAMILY FRIEND

DEFAULT

FLING

FORCED

No choice, feel trapped and want to escape

231 Index*






Lack of options, proximity or avoidance



Short-term experiment

Remember...

...it’s about BEHAVING like a friend.

IT’S NOT ABOUT BEING FRIENDLY


Identify the actions the brand must take to increase advocates.

2)

ACTIONS


The more brands behave like friends, the more customers return the favor

Brands that are perceived to act on their customer’s behalf have 44% more advocates than brands that do not.*[ ]

FACT :

*22squared Friendship Model ResearchCopyright © 2007 22squared


REMAIN AUTHENTIC

ACT TRANSPARENT


SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P.O .V.

GIVE MORE THAN GET


INSPIRE EACH OTHER

FRIENDSFRIENDS



REMAIN AUTHENTIC

ACT TRANSPARENT


SUPPORT EACH OTHER

FRIENDSSPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET


INSPIRE EACH OTHER

HAVE CHEMISTRYCreate a visceral spark or a gut reaction

FIREWORKS FORCED

225* 4*

Copyright © 2007 22squared*Category Index


REMAIN AUTHENTIC

ACT TRANSPARENT


SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET


INSPIRE EACH OTHER

REMAIN AUTHENTIC

FRIENDS

Original, real and distinctly meaningful

FOR REAL FOR NOT

127* 47*



REMAIN AUTHENTIC

ACT TRANSPARENT


SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET


INSPIRE EACH OTHER

FRIENDS

ACT TRANSPARENT

FRIENDS

Be honest and have clear intentions

CLEAR HIDDEN

210* 14*



REMAIN AUTHENTIC

ACT TRANSPARENT


SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET


INSPIRE EACH OTHER

FRIENDSARE EMPATHETIC

FRIENDSFRIENDS

Understand their needs, desires and lives

GETS ME HASSLES ME

231* 5*



REMAIN AUTHENTIC

ACT TRANSPARENT


SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET


INSPIRE EACH OTHER

FRIENDSSUPPORT EACH OTHER

FRIENDSFRIENDSFRIENDSBe helpful, useful act on their behalf

THERE FOR PEOPLE THEY’RE PEOPLE?


171* 100*

*Category Index

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET


INSPIRE EACH OTHER

Provide talk-worthy immersive experiences


REMAIN AUTHENTIC

ACT TRANSPARENT


SUPPORT EACH OTHER


FRIENDSFRIENDSFRIENDSFRIENDSALWAYS CLEAR NEVER HEAR242* 7*


SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET


INSPIRE EACH OTHER

Common lifestyle, belief system or attitude


REMAIN AUTHENTIC

ACT TRANSPARENT


SUPPORT EACH OTHER

SHARE A P.O.V.

FRIENDSFRIENDSFRIENDSFRIENDSFRIENDSBELIEVE USE


SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET


INSPIRE EACH OTHER

Provide value and meaning beyond the money spent

FRIENDSFRIENDSFRIENDSFRIENDS


REMAIN AUTHENTIC

ACT TRANSPARENT


SUPPORT EACH OTHER

GET MORE THAN GIVE

A DEFINING EXPERIENCE A VACATION

164* 4*



S H A R E A P O V

GIVE MORE THAN GET


INSPIRE EACH OTHER


REMAIN AUTHENTIC

ACT TRANSPARENT


SUPPORT EACH OTHER

Build anticipation, add value & communicateSTAY IN TOUCH

CARD CARRYING MEMBER ON THE SHELF185* 28*



REMAIN AUTHENTIC

ACT TRANSPARENT


SUPPORT EACH OTHER

SPEND QUALITY TIME

S H A R E A P O V

GIVE MORE THAN GET


INSPIRE EACH OTHER

FRIENDS

Motivates you to be di!erent or betterINSPIRE EACH OTHER

BE DIFFERENT BE NORMAL372* 27*


build...Friendship Actions


which sparks...Advocacy


that lead to...Conversations


Recommendationsthat turn into...


which are usually...Sales


in profit and lower in acquisition costsHigher


Get m

ore th

an g

ive

Honest

Attrac

tive/

Comforta

ble

Supporti

ve

Authe

ntic

Keeps r

elatio

nship

fres

h

Somethin

g in co

mmon

Communica

tes w

ith m

e

Quality

exper

ience

s

Liste

ns/R

espec

ts me

-8%-7%

-16%

-7%

-17%

-14%

-22%

-13%

-1%

category mean

* We’ve run this analysis for 75 brands.

-4%

WHAT IF... Brand Z* improved these actions?


advocacy increase

incremental sales/wk

conversations (1.6 rate)

incremental advocates/wk

4%

3000

4800

$480M

WOW, THIS...

= $25MMannuallyfor Brand Z


BIGTHAT’S A

NUMBER.

How active are your advocates?Get people talking more about the brand.

3)

MOMENTUM


STOPPED TALKING TOO BORED TO TALK TALKINGFADING STABLE GROWING

Brand XBrand Z


1.6

4.5

Brand Z

Brand X

:

:

Number of purchases influenced by each advocate


WHAT IF... Brand Z’s advocates were more active?

1.6:

:

=

$70MM=

$25 MM

incremental revenue/yr

4.5

Brand Z now

Brand Z on the Friendship Model


BIGGERWHOA, THOSE ARE

NUMBERS.

3marketing imperatives for giving

advocates a BIGGER VOICE


BE OF SERVICE

PROPAGATE

ENGAGE

Actions speak louder than words

Light the fuse

Engage: Right time, right place, right context

2)

1)

3)


BE OF SERVICE1)

Purpose (over positioning)

Content (that builds and spreads)

Experiences (that spark advocacy)

Utilities (that make the brand useful)

Actions (do more and do good)

Participation (make consumers a part of the brand)

Actions speak louder than words


Have a purpose that’s bigger than your product or service.

GO

OD

DIFFERENT

Position(better/best)

Not good, not di!erent

(badly positioned)

Horizontal Di!erentiation

Di!erent & irrelevant

Purpose(Blue Ocean)

* ZAG, Marty Nuemeier + Blue Ocean Strategy, HBR 2004

Entertain and provide content that people can use, influence,

adopt and adapt.

Create experiences worthy of participation and word of mouth.

Alternative Reality Game: Find the new ad. Win a solid gold dice.

Facebook Group for hints.

>

Marketing is the product: create things people can use and make

their lives better.

Hear your run. See your run. Connect with runners.

90% reco rate

>

Do things for consumers, and enable consumers to do

things for others.

Give customers a role in helping the brand succeed, allow them to participate and they will advocate.

PROPAGATELight the fuse.

2)


PROPAGATION PLANNING

Plan not for the people we reach, but for the people that they reach


Early Majority Early AdoptersInnovators Late Majority Laggards

Broadcast Media: targets the majority


Early Majority Early AdoptersInnovators Late Majority Laggards

Broadcast Media: targets the majority

Propagation:Spreadable content


CREATIVESTIMULUS

1)

ImagesAudio AssetsVideo Assets

ProductBrand

What can we share that is interesting?

Plan for the content you don’t have.

Propagation Process

AdSpace Pioneers (Reworked) by Griffin Farley

CREATIVESTIMULUS

MARKETINTELLIGENCE

Identify Fan CulturesUncover Connection

& Dialogue Points

1) 2)


ProductBrand



What innovator/ earlyadopter tribe can we

connect with?

Propagation Process


CREATIVESTIMULUS

MARKETINTELLIGENCE


& Dialogue Points

1) 2) 3)

IDEAPROPAGATION

Blogger OutreachTribe MobilizationPublic Relations


ProductBrand




connect with?

How do we share the idea?

How do we get fans to work for us?

Propagation Process


CREATIVESTIMULUS

MARKETINTELLIGENCE


& Dialogue Points

1) 2) 3) 4)

IDEAPROPAGATION


PARTICIPATORYPLATFORM

YouTube UploadsWebsiteMobileBlog


ProductBrand




connect with?



Build the platformand feed it with

interesting content.

Propagation Process


CREATIVESTIMULUS

MARKETINTELLIGENCE


& Dialogue Points

FEEDBACKPOINTS

Email AccountsVoicemailFacebookMySpace

1) 2) 3) 4) 5)

IDEAPROPAGATION


PARTICIPATORYPLATFORM

YouTube UploadsWebsiteMobileBlog


ProductBrand




connect with?



Build the platformand feed it with

interesting content.

Monitor thefeedback andparticipation.

Propagation Process


FOR MORE ... GO HEREPropagationplanning.com

A blog by Gri"n Farley

Sr. Planner @ 22squared

ENGAGEEngage: Right time, right place, right context

3)


Define your target and their best relationship with the brand


Find the best times to engage with them


Determine the value the brand can add to their life during that time


Determine the ultimate action the brand will take


Identify the best channels


Creatively use the channel to make a connection and encourage conversation



IN

a nutshell

Friendship Model

Be of service

Engage more than reach

Plan for propagation


Change your role

Act more than communicate

Build conversation momentum

IN

a nutshell

THANK YOU

About 22squared22squared: one of the largest independent, privately-owned advertising agencies (we use the term loosely) in the U.S. We provide strategic and creative advertising services across multiple business verticals. O!ering an empirical approach to building brand advocacy called the Friendship Model, we specialize in communications that drive business growth by building strong relationships with customers. The number 22squared represents the exponential power of brand advocacy as well as the average number of friends a person makes throughout his or her life. 22squared is located in Atlanta, GA and Tampa, FL. For more information, visit 22squared.com.

Created by : Brandon Murphy | [email protected]

mailto:[email protected]

mailto:[email protected]

the friendship model: how to build brand advocacy in a consumer-driven world

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